Yunhong Green Cti Ltd. · NASDAQ:YHGJ
Yunhong Green Cti — CTI Industries — Investor Presentation (November 2018)
20 slides from Yunhong Green Cti's investor presentation, November 2018
Slide 1: CTI Industries Corporation Investor Presentation
CTI Industries Corporation Investor Presentation November 2018 NASDAQ: CTIB
Slide 2: Safe Harbor Language
Safe Harbor Language Statements made in this presentation that are not historical facts are "forward-looking" statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and the Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncerta
Slide 3: Company Overview
Company Overview About CTI Industries Corporation (“CTI”) CTI at a Glance(1) ▪ A leader in the development, manufacture, distribution, and Ticker: CTIB sale of innovative flexible film products and pouches, gift Exchange: Nasdaq Capital Market items, and party goods for commercial and consumer marke
Slide 4: Investment Highlights
Investment Highlights Opportunity ▪ Create a larger presence in multi-billion dollar wholesale markets ▪ Opportunity for organic growth and acquisitions via public market platform Enhanced ▪ Restructured management team in late 2017 including experienced senior executives in sales, finance, operatio
Slide 5: Senior Leadership Backgrounds
Senior Leadership Backgrounds Board of Directors Jeffrey Hyland CEO, President, & Director ▪ Joined as President & Director of CTI in late 2017, reports directly to the BOD ▪ Prior to CTI, 28 years of experience with major consulting firms in corporate restructuring, profit improvement, investment b
Slide 6: Our Product Offering Spans Multiple Sectors and Large Markets
Our Product Offering Spans Multiple Sectors and Large Markets Market Consumer Market Size: Hundreds of Market Size: Hundreds of FoilSize: ~$750M & Latex Market Size: ~$300M billions* Commercial billions* Film Vacuum Storage Gift Items Balloons Products Systems Market Size(1): Market Size(1): Market
Slide 7: Significant Market Presence With Major Retail Customers
Significant Market Presence With Major Retail Customers CTI’s products are available in 10,000+ retail outlets, including… U.S., Mexico and UK 7
Slide 8: Strong Manufacturing Capabilities to Meet Our Customers Demands
Strong Manufacturing Capabilities to Meet Our Customers Demands Product Operations Manufacturing Facilities ▪ Lamination and extrusion coating of films1 1) Lake Barrington, Illinois: 68,000 Sq. Ft o HQ, production and warehouse space ▪ Slitting of film rolls1 2) Lake Zurich, Illinois: 118,000 Sq. Ft
Slide 9: Competitive Advantages
Competitive Advantages 1 Experienced and aggressive management team focused on profitable growth 2 Experienced creative design team 3 Competitive cost structure due to manufacturing in Mexico 4 Strong relationship with long-term customers 5 New product introductions 6 Extensive worldwide geographic
Slide 10: Successful Turnaround Underway - Growing Business With New Prospects
Successful Turnaround Underway - Growing Business With New Prospects Pre-Turnaround Vs. Transitional Actions ▪ Disappointing 2017: $56M net sales & $2M of EBITDA ▪ Engaged new management, implemented 100-day action plan ▪ Excess expenses ▪ $3M of expense reductions with additional expense reductions
Slide 11: Implemented Significant Expense Reductions
Implemented Significant Expense Reductions ▪ Beginning in 2017 and continued YTD 2018, management has implemented $3M of expense reductions ▪ Expense reduction process evolved into our new continuous profit improvement initiative ▪ Reduced expenses in the following areas of our business (with approx
Slide 12: Profit Improvement Initiatives Underway
Profit Improvement Initiatives Underway ▪ Continuously challenging our business model to extract value and enhance margins ▪ Each workstream is in various stage of analysis and potential implementation, including: o Where and what we manufacture o Maximize manufacturing capacity and percentage utili
Slide 13: Growth Strategy – Maximize Value for Shareholders
Growth Strategy – Maximize Value for Shareholders Pursue domestic sales opportunities with existing customers Develop and introduce new Strategic roll- customer and up acquisitions end user- focused products Expand Pursue new manufacturing domestic capacity customers Broaden international footprint
Slide 14: Pursue Strategic Acquisitions to Maximize Public Market Platform
Pursue Strategic Acquisitions to Maximize Public Market Platform Pursuing an acquisition strategy in order to accomplish: Expanded market Reduce seasonality Reduce customer presence in existing resulting from holiday concentration product lines balloon sales Current domestic & international acquisit
Slide 15: Summary Income Statement and EBITDA Reconciliation
Summary Income Statement and EBITDA Reconciliation Key Performance Stats Unaudited Year Ended 12/31 ($ In thousands except per share data) 1H 2018 1H 2017 2017 2016 Net Sales $ 29,964 $ 28,171 $ 56,237 $ 64,268 Gross Profit 6,664 6,735 13,755 17,119 Operating Expenses 5,963 6,678 13,125 14,279 Opera
Slide 16: Condensed Consolidated Balance Sheet and Statement of Cash Flows
Condensed Consolidated Balance Sheet and Statement of Cash Flows Condensed Consolidated Balance Sheet Unaudited Year Ended 12/31 ($ In thousands) 30-Jun-18 2017 2016 Cash and Cash Equivalents $ 453 $ 181 $ 563 Working Capital 8,852 9,631 11,080 Property, Plant, and Equipment, net 3,980 4,557 5,311 T
Slide 17: Investment Highlights
Investment Highlights Opportunity ▪ Create a larger presence in multi-billion dollar wholesale markets ▪ Opportunity for organic growth and acquisitions via public market platform Enhanced ▪ Restructured management team in late 2017 including experienced senior executives in sales, finance, operatio
Slide 18: Appendices
NDICES APPE
Slide 19: Sales by Product Line
Sales by Product Line Product Category FY 2017 FY 2016 ($ In thousands other than % of net sales) $ Sold % of Net Sales $ Sold % of Net Sales Foil Balloons $ 29,103 51.8% $ 26,530 41.3% Latex Balloons 9,400 16.7% 8,250 12.8% Vacuum Sealing Products 7,866 14.0% 17,455 27.2% Film Products 2,602 4.6% 4
Slide 20: Thank You
K YOU ANI LI A T
CTI Industries — Investor Presentation (November 2018) on 6ix